tv Bloomberg Markets Americas Bloomberg February 12, 2020 1:30pm-2:00pm EST
for a fifth turn. moderate contenders to win the new hampshire primary. aboutr sanders received officials are accusing while way of being able to attack -- to 26% of the boat. pete buttigieg was a close tap into mobile phone networks. second followed by amy national security advisor klobuchar. bideneth warren and joe believes the company uses backdoors. finished well behind, in the while way is it -- why is single digits. rejecting the allegation. that cruise ship that was barred is ejecting the alec from docking has found a place to disembark the 2200 people on board. -- the allegation. operators say the vessel wall global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than dock in cambodia on thursday -- 2700 journalists and analysts in over 120 countries. on thursday. i am mark crumpton, this is bloomberg. ♪ the boat was turned away because of fears that those aboard could spread the virus that originated in china. there are no confirmed cases on board. search to replace scarlet: angela merkel is growing. pressure is growing among conservative factions to speed bloombergom up the process to choose a candidate for the next election. bloombergrs, i'm are joined by
chancellor merkel'she will not n audiences. here are the top stories we are following. they too for powell. he continues his testimony on capitol hill, striking a dovish tone. another day, another record. u.s. stocks are in the green with the dow jones industrial climbing to all-time highs. treasury yields have advanced in lockstep. crude climbs oil into $51 a barrel even as opec slashes its forecast for global demand. let's get you started with a check of the markets. we are seeing risk on sentiment with u.s. stocks has a record -- had a record high. we are seeing the s&p 500 being .ed higher and energy stocks oriole is still above $51 a
barrel despite the fact that opec slashed its forecast for global demand this year. we are seeing the dow getting 7/10 of 1%. we are seeing more optimism given that we are seeing the spread of the coronavirus slowing down. -- two came to who wave hubei province, we saw the lowest number of new cases this month. still worth mentioning that there is uncertainty. to mention, we are seeing this slump in industrial production continuing in europe. take a look at this chart. yenou want to hedge, the might be a better option than gold. at least, it would be a cheaper option. morgan stanley saying that "be a better that when it comes to hatching to arrest get the
moment. >> want to show you another chart. this is the s&p 500, its valuation relative to its 20 day moving average. we are seeing at the highest level it has seen -- 200 day moving average, in two years. in terms of where things stand on a valuation basis, getting lofty. we do have some breaking news even as we see kind of a calming down of concerns about the coronavirus, we learn that the mobile world congress has been canceled because of that coronavirus. there have been to -- been participants who had already said they would not attend. that is the news we can bring to you. that congress has been canceled. that virus was a topic for powell this week in his two days
of testimony on capitol hill. mike with us. the focus seems to be on wage and the job picture. big picture, what is your biggest take away from it all? mike: you start with the fed's ability -- inability to put any numbers on what it might do to the u.s. economy. jay powell telling the senate taking committee it should have a significant impact on the chinese economy but they do not have good numbers yet. it will affect their trading partners and there may be some impact on the united states. it all depends on how long it lasts. that was the news in terms of what the fed might do, in terms of interest rates going forward. much of the rest of the time was spent on political topics. the idea of whether or not the fed can do anything to increase employment beyond what it is already doing.
powell said, we are letting things run hot. we have learned our lesson. economy, youst the guys, the senators and representatives need to do more on the fiscal side. >> what ousted powell have to say? mike: he said he worries about the deficit right now. even though it is not a threat right now. he does want to see it brought down over the long run. in the case of recession, the fed might not have the tools it needs to completely fight it and they would want fiscal help as well. with big deficits, he is afraid congress will not be able to respond. all of this given the context we do not know the full extent of damage done economically to business, even to confidence.
think this isu factoring in hemphill have to keep factoring into what the fed is thinking as they watch data coming related to coronavirus? mike: even if you took the coronavirus out of the equation, there would be watching to see if there were a positive reaction to the phase one trade deal and the idea that the global economy had bottomed out. we got bad economic data out of europe today that suggests powell was premature in saying that. they're going to be watching the data. there is no hurry to change rates. an increase is off the table, whether they were cut rates, right now that is not on their table. thank you very much. for more on the market reaction toivirus impact, let's go luke. we are seeing a positive sentiment across the board,
stocks rising. how much of this has to do with anything on how positively powell portrayed the economy and virus concerns retreating? >> probably a lot more on the latter. in the absence of news flows surrounding the virus in worse we are probably going to move away from the depths of recession fear pricing we had in the 10 year yield. if you look at the range, it has been interesting to see, the past two days will be among the least the 10 year has moved this year. it is not only the fact that , but they settling in are also common down. shery: i we just headed toward lower yields? given that we are seeing having?
now we are saying, yields are rising but we are still c2? >> no one is expecting them to get materially higher. there is a sense that powell does strike a dovish note while signaling competence. they are in no hurry to lower rates. we get a signal overnight that even they are not leaping on the train to necessarily cut rates in the face of the coronavirus. the central bank response or the market interpretation has probably been a little overstated so far. that is a driver of yields, probably not, just the fact that growth in -- growth and inflation have not picked up. that is the more enduring trend. amanda: what is the correlation between equities and fixed-income fit in? >> that has been interesting to
watch. while, stocks and bond yields were negatively correlated. haystack would manage to rise even when yields were falling. this was a software to the moon trade. failing.yclicals were right now the situation has flipped back to what you might consider more normal. stocks, bonds rising in tandem. you get to a certain point in markets where you can't make the excuse anymore. you can't say that following yields are a good thing for risk asset valuation, because they were starting to dent -- to send a negative signal. as yields rise it is having to do with some of the tail risk. based on limited information we have. shery: great to have you with us. appreciate it. areng up, lawmakers
♪ this is bloomberg markets. house republicans are unveiling their plan to combat climate change today. in answer to democrats who have dominated on the issue. public health officials are calling for water safety to be prioritized. it is already playing at the -- out of did the state level. state level. >> we are making a huge
investment in drinking water infrastructure. settlement money we got from exxon. we are doing a taxpayer free. for more we welcome kellogg schwab. he joins us from baltimore. professor, so interesting to hear the governor stress, no tax dollars. in a way that undermines the importance of the issue. i we missing the importance of water safety? kellogg: water safety is incredibly important. a drink of clean water from the tap is one of the most undervalued aspects of american life. drop is putting pressure on our water supplies as well as our aging infrastructure. that can affect public health and the business sector. it is important we engage
together in finding the solutions. how important is clean water for the economy? kellogg: it is incredibly important. there is a staggering 240,000 water main breaks per year in the united states, costing an estimated $2.4 billion. that is just to repair the leaks. that doesn't have important drivers of economic value of water. all of our sectors. eventhis is, hospitals, farming, rely on water. we need to have that ability to have safe water provided and adequate removal of waste to have a thriving economy. amanda: i think there is an understanding that there is a mountain to climb here. we have aging infrastructure. are we doing that in a way that is thoughtful about climate change? about the additional requirements we will face? kellogg: climate change brings
that unknown factor. we have an existing infrastructure of water, our pipes that provide drinking water and wastewater removal. sadly, they are underground. they are ignored. we have also not repaired or replaced them. there is cost estimates from anywhere from tens to hundreds of billions of dollars to repair them. if we put that on top of climate change we know that there will be variances in the amount of rain, in the amount of drought. that will lead to this problem. we can start figuring out better ways to appreciate the value of water. putting appropriate costs into it and conserving water. water uses an important part of that. shery: i would you say of the trump administration's policy? levelg: at the government these are decade-long challenges and we also have to have solutions that are long-term.
each administration has its own values, but overall the united states has built a very robust economy based in part on aspect -- on access to water. that said, it is important to realize that there are federal regulations that will allow us to drive improving economic and public health sectors. do you think that we are correctly or adequately addressing the fact that water is not an endlessly renewable resource? there are parts of america that are experiencing real water shortages and some of them are permanent. i'll be on top of that issue? -- are we on top of that issue? kellogg: i don't think we're quite there yet. some states are pushing water reuse. the idea that we can consider
this as no for one thing and discarded. we have to consider this as a value-added thing. on the east coast we have considered -- we are considered to have a lot of water but we are under water stress as well. we need to drive innovation in ways that will improve water availability and reduction of water use. and there is a market to be made in this. we have to be engaged in a way that can be proactive to produce high-quality water. still relying on basic public health principles. come down tol all cost, right? where would those funds come from? kellogg: that is a challenging question. over the decades we have ignored the true value of water. we built these pipes hundreds of years ago, gets ago, and we have not valued what needs to maintain that high-quality water.
raising water bills is an important part of that, but a structure is important. we also need to consider that there is a business approach to this. at the government level we do need investment. you see the roads, you see the roads, he see the bridges, but what is in our pipe system, we have a need -- and there is jobs to be made in this. the american civil engineer society has estimated that there is going to be a cost to the households of $46 billion over seven years. and to the business sector of $440 billion. there is also ways we can have higher-quality water that can improve both resources and provide jobs. estimated that $1.1 million can be provided. you very much for joining us today. kellogg schwab.
♪ this is bloomberg markets. as canceling the mobile world congress in barcelona. due to global concern over the coronavirus. spread ofan says the the virus makes it impossible to hold the event. for more we welcome mark from los angeles. was this inevitable giving me a number of companies that already pulled out, including those carriers? exactly. we have been anticipating this
for the past few days. you have every major player who would've been at the conference either pulling out or pressuring gsma to pull out. he saw sprint and at&t yesterday. qualcomm was awaiting this announcement. some of the companies like samsung and huawei have scaled back which executives they were going to send. he saw calendar invites being canceled for meetings. this was bound to happen. and the rate decision because they had no other option. the other side is the significant economic impact this is going to have on barcelona, which has been preparing to host this for several months. the industry there, hotels, restaurants. also the budgets that were set aside by these companies in order to put on this conference
and attend this conference. that has to be worked out as well. amanda: there will be some pain. maybe some savings on the part of the businesses. what are some of the intangible impacts here? of the collaborations that don't happen, the sales that don't get made. how do we measure any of that? mark: the way to measure this is, basically, these are a bunch of meetings that were just not happen otherwise. on the other set of the coin, it is 2020. a lot of these important meetings are likely to get rescheduled quickly. whether that is via conference call or phone call or meetings elsewhere. the good news is travel and digital communication is so simple these days. if there was to be a supercritical meeting between a company and a partner, it is going to happen anyway. i don't think the impact is that severe. thank you very much for
joining us with the latest on the cancellation of the mobile world congress in barcelona. amanda, it was a great day to be korean. when i saw parasite made history, they won that coveted best picture award. the first ever in the oscars history given to a foreign language film. it was an amazing day, but it was not just the director celebrating. a korean hedge fund investing around $500,000 in the film. in $165 million. given the type of reception it has received, you can imagine how well the hedge fund could do. the that producer of this film gained 90% this week. hadda: lots of people who
the potential to distribute this film and passed on it. now kicking themselves. it took canadians to make a --about 22 hours to make a claim on this film. one of the actors is korean-canadian. so, we are claiming a piece of this too. shery: we both are. canda: bloomberg users interact with all of the chart you see. from toronto and new york, this is bloomberg. ♪
mark: i am mark crumpton with "first word" news. a global health official says it is " way too early" to predict the beginning of the end of the virus outbreak that began in china. the doctor spoke at a news conference today at world health organization headquarters in geneva, but he added that it is reassuring that the number of daily cases appears to be
stabilizing, mainly due to china's huge public health operation which placed 60 million peop deval patrick has dropped his bid for the white house. it comes after he failed to secure 1% entered the democratie just agreements ago. patrick campaign across the country focusing some of these energy on south carolina, where he hoped to cut into joe biden's support among african-americans. but his campaign never caught fire, and he didn't qualify for any of the presidential debates. house republicans boycotted and intelligence committee hearing today following president trump's impeachment. congressman devin nun